Trump targets global, domestic mineral resources to boost US supply

The Economist explores in a new article that US President Donald Trump is making a major push to secure critical minerals for the US, both from foreign sources and through revitalizing domestic production.

With an eye on Greenland’s rare earth deposits and Ukraine’s lithium reserves, Trump is exploring international opportunities to bolster America’s mineral supply. In response to his interest, leaders from the Democratic Republic of Congo have offered the US access to their rich mineral reserves.

However, Trump’s ambitions go beyond foreign acquisitions. Domestically, he seeks to revive the US mining industry, which has faced a decline despite its strategic importance. In February, Trump announced plans to take "historic action" to ramp up the production of critical minerals within the US. His executive order, issued on March 20, aims to streamline permitting, prioritize land-use for mining, and provide financial support to the industry.

The push for increased domestic mining comes as the US becomes increasingly reliant on metal imports, particularly from China, which controls crucial metals for infrastructure. Despite Trump’s proposals, there are concerns about whether they will be enough to attract investment in US mining operations, especially given the capital-intensive nature of the industry. McKinsey estimates that closing the global copper supply gap alone will require $200 billion over the next decade.

In addition to challenges in mining, refining raw materials such as copper presents another obstacle. Smelting facilities are costly and time-consuming to establish, and local opposition due to environmental concerns is common. Western companies have struggled to set up effective refining operations, and delays often result in significant cost overruns.

Given these hurdles, boosting US mineral production remains a difficult task. Strengthening partnerships with allies like Canada and creating a stable domestic mining environment could help, but Trump’s approach may hinder progress on both fronts.

By Naila Huseynova